First-quarter revenue of $1.4 billion was up 6 percent compared to
same period in 2011

Company secures new international product orders, extends several
key service contracts

MCLEAN, Va. — (BUSINESS WIRE) — May 4, 2012 —
ITT Exelis (NYSE:
XLS) today reported 2012 first quarter revenue of $1.4
billion, a 6 percent increase over the same previous-year period. Net
income was $70 million, down 15 percent from the first quarter of 2011,
due in part to costs associated with the company’s recent spinoff from
ITT Corporation. Adjusted operating income grew 29 percent, to $151
million, and adjusted operating margin improved to 10.6 percent from 8.7
percent in the first quarter of the previous year. Adjusted earnings
were $0.47 per share, up 4 percent from the same period in 2011.

The company secured several strategic international product contracts
during the first quarter, including: aircraft weapons release equipment
to Saudi Arabia, night vision goggles to the United Kingdom and
radiation detection sensors to Japan. Exelis also signed a memorandum of
understanding with technology company Tata Advanced Systems, Limited to
assemble and sell night vision equipment in India. The company was
successful in retaining or extending several large U.S. military
services contracts, including Operations Maintenance and Supply-Europe
(OPMAS-E) which was re-awarded to Exelis and is potentially worth as
much as $160 million in revenue with all options exercised.

During the quarter, Exelis completed the acquisition of Applied
Kilovolts Group Holdings, Limited, a leading provider of precision high
voltage power supplies for medical, scientific, pharmaceutical and food
safety instruments. The acquisition supports a key growth strategy for
the company, enabling the expansion of its position as a leading
provider of geospatial solutions from sensors to decisions, in this
case, as a supplier of key components for the high-growth medical and
scientific instrumentation market.

“Despite continued challenges in the U.S. defense market, Exelis
delivered solid results in the first quarter of 2012, while advancing
critical technologies, adding new capabilities to our business portfolio
and managing our pension,” said Dave Melcher, Chief Executive Officer
and President of Exelis. “We also capitalized on several key
international product sales opportunities and are excited to continue
serving our valued customers through extensions and recompetes on
several service contract programs.”

Segment Results

C4ISR Electronics and Systems

C4ISR Electronics and Systems first-quarter 2012 revenue was $653
million, down 5 percent from the same period in 2011, due to expected
declines in sales of radios, jammers and domestic night vision
equipment, partially offset by increased sales of upgrade kits to the
installed base of CREW jammers. C4ISR Electronics and Systems
first-quarter adjusted operating income rose to $99 million, 22 percent
higher than the first-quarter of 2011, driven by benefits from
restructuring and decreased pension expenses.

Information and Technical Services

Information and Technical Services first-quarter 2012 revenue was $768
million, 16 percent higher than the same period in 2011, due to several
large services contracts reaching full operational tempo. First-quarter
adjusted operating income for the segment was $52 million, up 44 percent
over the first quarter of 2011, primarily due to program productivity
and decreased pension expenses.

2012 Guidance

The company confirms its guidance for full-year 2012. Full-year 2012
revenue is expected to be $5.4 billion to $5.5 billion, a decrease of 7
percent from 2011. Full-year adjusted operating margin is expected to be
10.6 percent to 10.8 percent, an increase of 60 to 80 basis points
year-over-year. Adjusted earnings are expected in the range of $1.80 to
$1.86 per share, down 8 percent from 2011. The company notes that
forward-looking statements of future performance made in this release
are based upon current expectations and are subject to factors that
could cause actual results to differ materially from those suggested
here, including those factors set forth in the Safe Harbor Statement
below.

Investor Call Today

Exelis senior management will host a conference call for investors today
at 10 a.m. Eastern Daylight Time to review first-quarter 2012 results
and answer questions. The briefing can be monitored live via webcast at
the following address on the company's website:
www.exelisinc.com/investors.

About ITT Exelis

Exelis is a diversified, top-tier global aerospace, defense and
information solutions company with strong positions in enduring and
emerging global markets. Exelis is a leader in networked communications,
sensing and surveillance, electronic warfare, navigation, air traffic
solutions and information systems with growing positions in cyber
security, composite aerostructures, logistics and technical services.
The company has a 50-year legacy of innovation and technology expertise,
partnering with customers worldwide to deliver affordable,
mission-critical products and services for managing global threats,
conflicts and complexities. Headquartered in McLean, Va., the company
employs about 20,500 people and generated 2011 sales of $5.8 billion.
www.exelisinc.com